Equitas Small Finance Bank (SFB) is the largest SFB i ..
Equitas Small Finance Bank IPO Market Lot:
| IPO Open: | 20 October 2020 |
| IPO Close: | 22 October 2020 |
| IPO Size: | ₹280 Crore (Approx) |
| Face Value: | ₹10 |
| Price Band: | ₹34 - ₹35 Per Share |
| Listing on: | NSE & BSE |
| Retail Portion: | 35% |
| Equity: | 72,000,000 Shares ( As Per News) |
| Employee Discount: | NA |
| Lot Size: | Minimum 428 Shares & Maximum 5564 Shares |
| Minimum Amount: | ₹14,980 |
| Maximum Amount: | ₹1,94,740 |
Here are the key things to before subscribing to the issue:
1) Objective: The IPO is mainly to meet the RBI’s regulatory norms that require the banking subsidiary to be listed within three years of commencement of operations which was September 2019 and to reduce promoter stake to 40 percent within five years, which will be by September 2021. As per the regulations, the promoter holdings have to be reduced to 30 percent in 10 years (by September 2026) and to 26 percent in 12 years—by September 2028.
"Our deadline to go public was September 2019 as per RBI rules, which we missed. We missed the September 19 deadline for listing because we were trying to get a regulatory nod for a scheme of arrangement which SEBI rejected. Listing was further delayed due to the pandemic," Vasudevan explained.
2) Price Band: Equitas Small Finance Bank has fixed the issue price in the price band of Rs 32-Rs 33 per share.
3) Minimum Bid: Applicants can bid for a minimum one lot of 450 equity shares and in multiples of 450 equity shares, extending up to 13 lots.
4) Book Managers: The lead managers of the for the initial public offer are Edelweiss Financial Services, IIFL Securities and JM Financial Consultants, while KFintech Private Limited is the registrar to the issue.
5) Issue Size: The public issue consists a fresh issue of Rs 280 crore (8.5 crore shares) and an offer for sale of 7.2 crore equity shares by Equitas Holdings (valued at Rs 237.6 crore at the upper price band), taking the total issue size to Rs 517.6 crore.
6) Reservation: The offer includes a reservation of Rs 51 crore worth of shares for eligible shareholders of Equitas Holdings and Rs 1 crore shares for eligible employees of Equitas Small Finance Bank. The eligible shareholders mean those individuals and HUFs who are the public equity shareholders of EHL (excluding such persons who are not eligible to invest in the offer under applicable laws or are otherwise unable to make any such investment) as on the date of the red herring prospectus i.e. October 11, 2020, the company’s filing said.
7) Background: Equitas Small Finance Bank was incorporated in Chennai on June 21, 1993. Their asset products include small business loans, housing loans, and agriculture loans, Vehicle Loans, MSE Loan etc. On the liability side, they offer current accounts, salary accounts, savings accounts, and a variety of deposit accounts to their clients.
